Tag: mortgage

Contrary to Perception, Little Difference Between Young and Old DTI Ratios

September 06, 2019 by Zelman & Associates

Earlier this week, Home Mortgage Disclosure Act (HMDA) data for 2018 was released. The annual dataset is enormous and serves as the primary baseline for most analyses of the mortgage market and its participants. This year also includes numerous ...

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Filed Under | affordabilitymortgage

Alarming Increase in Mortgage Debt-to-Income Ratios Reverses Course

July 26, 2019 by Zelman & Associates

Late last year, the average mortgage debt accumulated by homebuyers relative to their income was quickly rising, which was attributable to home price appreciation outpacing income growth, spiking mortgage rates and more lenient underwriting ...

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Filed Under | affordabilitymortgage

As Housing Sentiment and Actions Often Contradict, What Factors Matter Most?

May 17, 2019 by Zelman & Associates

Last week, Fannie Mae released the results of its monthly Home Purchase Sentiment Index, which is “designed to track consumers’ housing-related attitudes, intentions and perceptions.” As a research firm, we always find value in surveys, assuming ...

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Filed Under | macro housingmortgage rates

Historically Linked, Here’s Why Housing Outlook Far Superior to Autos

March 08, 2019 by Zelman & Associates

Historically, the housing and auto markets have been highly linked given the big-ticket nature of the consumer purchases and the dependence on credit for the majority of buyers. For example, from 1990-2016, auto sales and housing starts have ...

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Filed Under | macro housingmortgage

Debating Risk, Merit of GSEs Accumulating Low Downpayment Market Share

February 22, 2019 by Zelman & Associates

Like the three years prior, in 2018, approximately 45% of the $1.2 trillion of purchase mortgages originated was covered by mortgage insurance provided by private entities or the government via the FHA, VA or USDA programs. This suggests an ...

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Filed Under | entry-levelmortgage

A New Analysis of Homebuyer Leverage Ratios and Entry-Level Implications

February 08, 2019 by Zelman & Associates

In 2018, we estimate that the monthly payment for a typical entry-level homebuyer increased 11% year over year, inclusive of principal, interest and mortgage insurance. The spike was driven by an approximate 40 basis point increase in 30-year ...

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Filed Under | affordabilityentry-levelmortgage

Is Fear of Homeowners Trapped by Low Mortgage Rate Justified?

November 30, 2018 by Zelman & Associates

According to Freddie Mac’s weekly survey, the effective rate for a 30-year fixed rate mortgage bottomed at approximately 3.30% in late-2012. From 2012-17, the rate was below 4.00% in 208 out of 313 weeks, or 66% of the time. With the latest ...

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Filed Under | macro housingmortgage rates

Some Fascinating Conclusions as Home Affordability Concerns Come into Focus

November 16, 2018 by Zelman & Associates

Over the last year, home price appreciation has averaged roughly 5.5% across the country while the typical 30-year fixed mortgage rate has expanded by almost exactly 100 basis points. A simple calculation results in the average monthly mortgage ...

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Filed Under | affordabilitymortgage

With the Fed in Focus, What Can We Learn from Historical Actions?

November 02, 2018 by Zelman & Associates

Thus far in 2018, the average 30-year fixed mortgage rate has increased approximately 50 basis points year over year, putting the year on pace to have the highest borrowing cost since 2010. According to Google Trends, an index tracking how ...

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Filed Under | macro housingmortgage rates

Homebuyers Increasingly Choosing Mortgage Companies Over Local Bank

June 15, 2018 by Zelman & Associates

In 2005, we estimate that there were 6.6 million purchase mortgages originated, proving to be an all-time peak. At that time, even with the excessive level of subprime and low-quality loans that are often associated with non-banks, 66% of originations ...

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Filed Under | mortgage